FAC Explorer

Audit 322795

FY End
2023-12-31
Total Expended
$8.29M
Findings
2
Programs
10
Organization: Special Health Resources for Texas, Inc. (TX)
Year: 2023 Accepted: 2024-09-30
Auditor: Henry & Peters PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499885 2023-002 Significant Deficiency - N
1076327 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
93.224 Community Health Centers $1.39M Yes 0
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $1.28M Yes 0
93.917 Hiv Care Formula Grants $1.01M - 0
93.940 Hiv Prevention Activities Health Department Based $359,047 - 0
93.939 Hiv Prevention Activities Non-Governmental Organization Based $310,303 - 0
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $227,461 Yes 0
93.217 Family Planning Services $145,674 - 0
93.526 Fip Verification $131,113 - 0
93.268 Immunization Cooperative Agreements $57,554 - 0
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $17,847 Yes 0

Contacts

Name Title Type
K38VK6M92M21 Ken Kosowicz Auditee
9032340776 Adrienne Deason Auditor
No contacts on file

Notes to SEFA

Title: General Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: For indirect costs, the amounts expended are claimed as an indirect cost recovery using an approved cost allocation plan. The auditee did not elect to use the de minimis cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Special Health Resources for Texas, Inc. under programs of the federal government for the year ended December 31, 2023. The Organization’s reporting entity is defined in Note 1 to the Organization’s basic financial statements. Federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the Schedule.
Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: For indirect costs, the amounts expended are claimed as an indirect cost recovery using an approved cost allocation plan. The auditee did not elect to use the de minimis cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Special Health Resources for Texas, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Special Health Resources for Texas, Inc.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: For indirect costs, the amounts expended are claimed as an indirect cost recovery using an approved cost allocation plan. The auditee did not elect to use the de minimis cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: For indirect costs, the amounts expended are claimed as an indirect cost recovery using an approved cost allocation plan. The auditee did not elect to use the de minimis cost rate allowed under the Uniform Guidance. For indirect costs, the amounts expended are claimed as an indirect cost recovery using an approved cost allocation plan. The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-002
Grantee health centers must prepare and apply a sliding fee discount schedule so that the amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient's ability to pay. The Organization adopted a Sliding Fee Discount Schedule based on current Federal poverty guidelines; however, they failed to consistently document the patient's assessment for the discount and retain thepatient's application. 7 out of 25 patients tested (28%) did not have documentation of the sliding fee discount assessment. We were unable to determine whether the sliding fee discount was properly applied to these patients. The effect is reportable non-compliance with the Special Tests compliance requirement for this grant. Further, the Organization has a significant deficiency in internal controls over compliance. The Organization's internal control over compliance was properly designed to ensure patients were assessed for ability to pay; however, it was not operating effectively during the period under audit.
Finding 2023-002
Grantee health centers must prepare and apply a sliding fee discount schedule so that the amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient's ability to pay. The Organization adopted a Sliding Fee Discount Schedule based on current Federal poverty guidelines; however, they failed to consistently document the patient's assessment for the discount and retain thepatient's application. 7 out of 25 patients tested (28%) did not have documentation of the sliding fee discount assessment. We were unable to determine whether the sliding fee discount was properly applied to these patients. The effect is reportable non-compliance with the Special Tests compliance requirement for this grant. Further, the Organization has a significant deficiency in internal controls over compliance. The Organization's internal control over compliance was properly designed to ensure patients were assessed for ability to pay; however, it was not operating effectively during the period under audit.